Are These Top Consumer Stocks On Your August Watchlist?
The market for restaurant stocks has drastically changed in 2020. The year started off looking rather normal for the world. That is until the coronavirus pandemic began. People had to stay inside and businesses were closed down indefinitely. This meant that restaurants could no longer operate as normal. And with that consumers did not want to go to restaurants anymore.
The only way restaurants were able to operate was via takeout. This proved to be successful for many restaurants but smaller businesses struggled. That is why the sector for restaurant stocks has been so interesting to watch. Many top restaurant stocks have yet to recover while some are higher than ever. Investors who figured out the best restaurant stocks to watch have been able to make a profit
If a restaurant sees a profit increase, its stock price will rise. If a restaurant releases good partnership or acquisition news, it can rise as well. But these things are not always predictable. That’s why it is important to stay up to date with restaurant stock news if you are looking to invest. Now let’s look at two restaurant stocks that have been trending in the market.
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Top Consumer Stocks To Watch Before August: Del Taco Restaurants
The first restaurant stock to watch is Del Taco Restaurants Inc. (TACO Stock Report) due to its recent momentum in the market. Del Taco is a fast-food restaurant that was founded in 1964. It primarily serves Mexican food as well as some other options. Del Taco was bought by Levy Acquisition Corporation and went public on June 30th, 2015. TACO stock price fell hard when the pandemic started.
Shares of TACO stock dropped with the rest of the market back in February to March. Before the pandemic TACO stock price was around $7.70 a share on average. Then TACO stock fell as low as $2.55 a share in March of 2020. Since then, TACO stock price has begun rising once again. As of July 23rd, TACO stock is at $7.03 a share on average. This means that TACO stock is close to a full recovery in share price. So TACO stock price is up 175.68% from its low in March.
If TACO stock price can continue rising investors will be seeing it as an option more. Consistent sales and adaptation to the new normal has helped Del Taco stay afloat. Now we look towards the future to see how TACO stock will perform. And that is why TACO stock is a restaurant stock to watch.
Top Consumer Stocks To Watch Before August: Starbucks
The second restaurant stock to watch is Starbucks Corporation (SBUX Stock Report) due to its recent momentum in the market. By now we all know the coffee giant that is Starbucks. Starbucks is the largest chain of coffee restaurants in the world. Currently Starbucks operates over 30,000 locations in over 70 countries. They serve all types of coffee, tea, and some coffee shop style food as well. In 2018, Starbucks brought in more than $24.71 billion in revenue.
At the start of the pandemic, SBUX stock did not have a good run. Before the pandemic, SBUX stock price was around $89 a share on average. Then, SBUX stock fell as low as $56 a share on average in March. But after that things kind of picked up for SBUX stock price. As of July 23rd, SBUX stock is at $76.26 a share. While this is not near its previous price yet, it is way above SBUX stock price low. In fact SBUX stock is up 36.17% from its low point in March. And from July 17th to July 23rd, SBUX stock is up 4%
Bottom Line
Starbucks has managed to stay afloat due to its fast-food nature. That goes the same way for Del Taco. That is why TACO stock and SBUX stock are two restaurant stocks to watch. There could be potentially positive quarter results from these companies resulting in their stock price to rise even more. If you are looking to invest in restaurant stocks then you should stay updated on the best ones.
